FCPA

June 20, 2019

To settle charges of violating the Foreign Corrupt Practices Act (FCPA), Walmart Inc. and its Brazilian subsidiary, WMT Brasilia S.a.r.l., have agreed to pay $138 million to the DOJ and $144 million to the SEC, for a combined penalty of $282 million.  According to the DOJ and SEC, Walmart’s alleged failure to implement and maintain adequate internal anti-corruption controls from 2000 to 2011 resulted in bribes to government officials in Brazil, China, India, and Mexico that allowed Walmart’s foreign subsidiaries to open more stores faster.  For cooperating with all investigations and self-disclosing some of the alleged misconduct, Walmart received a reduction of 20-25% off the amount originally owed to the DOJ.  In addition to the monetary penalty, Walmart has agreed to retain an outside compliance monitor for two years.  DOJ, SEC, USAO EDVA

March 29, 2019

A German provider of dialysis products and services has agreed to pay a total of $231 million to the DOJ and SEC for violating the Foreign Corrupt Practices Act (FCPA). Fresenius Medical Care AG & Co. KGaA (FMC) admitted to paying $30 million in bribes to government officials throughout Africa, the Middle East, and other regions, in order to procure business that eventually earned it over $140 million in profits. Although it voluntarily self-disclosed the misconduct in 2012, the misconduct continued in certain countries until 2016. As part of the resolution, Fresenius has entered into a non-prosecution agreement with the DOJ and will pay $85 million in criminal penalties to the DOJ, as well as $147 million in disgorgement and interest to the SEC. DOJ; SEC; USAO MA

March 6, 2019

A Russian telecommunications provider agreed to pay $850 million to the U.S. resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) in seeking to win business in Uzbekistan. Over a period of eight years, Mobile TeleSystems PJSC (MTS) allegedly paid at least $120 million in bribes to an Uzbek official who held sway over the country's telecommunications regulatory authority, resulting in more than $2.4 billion in company revenues. MTS also agreed to a $100 million settlement with the SEC, included within the total $850 million settlement. DOJ; SEC; USAO SDNY

February 15, 2019

Cognizant Technology Solutions Corporation will pay $25 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) in paying a $3.6 million in bribes to government officials in India in connection with construction of facilities for Cognizant in Chennai.  Cognizant’s president, Gordon Coburn, and chief legal officer, Steven E. Schwartz, have been charged by the SEC for authorizing payment and concealment of the bribe.  SEC

December 26, 2018

Brazil-based Centrais Elétricas Brasileiras S.A. will pay a $2.5 million fine to the SEC for violations of the FCPA arising from an illicit bid-rigging and bribery scheme among certain private Brazilian construction companies involving the construction of a nuclear power plant.  The SEC also found material weaknesses in Eletrobras' internal control over financial reporting.  SEC